Status quo or token output hike likely outcome of Opec+ meeting

AS the world’s largest oil producers are set to discuss future production quotas at a key meeting on Wednesday (Aug 3), most pundits expect no change to the group’s gradual output increments, although some reckon a “minuscule” output boost is possible following US President Joe Biden’s visit to Saudi Arabia last month.

Singapore-based Vanda Insights founder and chief executive Vandana Hari said Biden’s visit to Saudi Arabia - the de facto leader of Opec - has put the spotlight on this week’s Opec+ (Opec and its allies) gathering, whose outcome would have otherwise been “fairly predictable” as production targets were expected to be maintained at an even keel for September.

This would be the first gathering of the petroleum exporting countries group since Biden’s visit to Saudi in late July. While the visit has raised hopes in Washington and perhaps put some pressure on Saudi Arabia and the UAE (United Arab Emirates) to respond to the US’ request to open the spigots wider - or at least be seen to be doing so - and help tame soaring inflation, Hari expects to either see the status quo continuing or a “token hike”. If the latter happens, it may help Biden “save face but would not actually translate into anything substantial”, she added.